Normally,the 20FT/40FT and 40HQ are the popular shipping containers,their loading capacity info as below:
What is consolidation
Consolidation function is contributed by distribution warehouse. This warehouse not only as warehouse (storage place), but as point of distribution too. So many manufactures will send their product to a distribution warehouse, then the customer will take that product from a distribution warehouse. It will reduce a transportation cost for customer.
How consolidation works
1. All the suppliers’ cargo collected or concentrated together as one shipment
2. Load the combined shipment into the container or the pallet
3. Load the container or the pallets to the vessel or flight
4. Prepare the combined involved documents and do the customs clearance;
5. Deliver to importer’s warehouse or factory
There are other benefits of consolidation beyond just saving money:
o Faster transit times
o Less congestion at loading docks
o Fewer, but stronger carrier relationships
o Less product handling
o Reduced accessorial charges at consignees
o Reduced fuel and emissions
o More control over due dates and production schedules
On-site vs. Off-site Consolidation
Once you have more visibility and can identify where consolidation opportunities exist, the physical combining of freight can happen a few different ways.
On-site consolidationis the practice of combining shipments at the original point of manufacture or distribution center where the product is shipping from. Proponents of on-site consolidation believe the less product gets handled and moved the better from both a cost and efficiency perspective. For producers of ingredients and snack food products, this particularly rings true.
The concept of on-site consolidation is best suited for shippers having more advanced visibility of their orders to see what is pending, as well as the time and space to physically consolidate the shipments. Ideally, on-site consolidation happens as far upstream as possible at the point of order pick/pack or even manufacture. It can require additional staging space within the facility however, which is an obvious limitation for some companies.
Off-site consolidationis the process of taking all the shipments, often unsorted and in bulk, to a separate location. Here, the shipments can be sorted and combined with those going to like destinations. The option of off-site consolidation is usually best for shippers with less visibility to what orders are coming, but more flexibility with due dates and transit times. The downside is the extra cost and added handling required to move the product to a place it can be consolidated.
How a 3PL Helps Condense LTL Orders
Consolidation has many benefits, but it can often be difficult for independent parties to execute.
A third-party logistics provider can help in numerous ways:
o Unbiased consultation
o Industry expertise
o Vast carrier network
o Truck sharing opportunities
o Technology – optimization tools, data analysis, managed transportation solution (MTS)
The first step for companies (even those assuming they are too small) should be to facilitate better visibility upstream for logistics planners. A 3PL partner can help facilitate both visibility and collaboration between siloed departments. They can bring an unbiased opinion to the table and can provide valuable outside expertise.
As mentioned previously, 3PLs that specialize in serving clients who produce similar goods can facilitate the sharing of trucks. If going to the same distribution center, retailer, or region, they can combine like-products and pass savings to all parties.
Developing the various cost and delivery scenarios that are part of the consolidation modelling process can be complex. This process is often made easier with technology, which a logistics partner can invest in on behalf of shippers and provide affordable access to.
Looking to save money on shipments? Dive into whether consolidation is possible for you.